The cost of basic necessities in Indiana has continued to rise faster than overall inflation, leaving more than one million households struggling to afford everyday expenses despite many adults working full-time jobs, according to a new report from United For ALICE.
The 2026 State of ALICE in Indiana report, released through a partnership between Indiana United Ways and United Way of Central Indiana, found that 38% of Indiana households lived below the ALICE Threshold in 2024. That includes families living in poverty as well as those classified as ALICE, or Asset Limited, Income Constrained, Employed.
The report found that while many households earn too much to qualify for public assistance, they still do not earn enough to cover the basic costs of housing, child care, food, transportation, health care and technology.
In total, 1,052,775 Indiana households were living below the ALICE Threshold in 2024. Of those, 340,168 households lived below the federal poverty level while another 712,607 fell into the ALICE category.
According to the report, the cost of essentials has steadily outpaced inflation for more than 15 years.
Between 2007 and 2024, Indiana’s ALICE Essentials Index increased by more than 61%, compared with a 52% increase in the Consumer Price Index, the federal government’s primary measure of inflation. Unlike the CPI, which tracks more than 200 categories of goods and services, the ALICE Essentials Index focuses only on six necessities required for families to live and work.
“The cost of basics” remains one of the primary drivers of financial hardship across the state, the report found.
Financial strain reaches beyond poverty line
Researchers say traditional poverty measures fail to capture the growing number of working households struggling to stay afloat.
The federal poverty level in 2024 was $15,060 for a single adult and $31,200 for a family of four. However, ALICE data found the minimum annual income needed to cover basic expenses in Indiana was significantly higher: $28,764 for a single adult and $74,028 for a family of four consisting of two adults, an infant and a preschool-aged child.
Those figures vary by county, with Hamilton County reporting the highest survival budget costs in the state.
Michael Budd, president and CEO of Indiana United Ways, said the data helps local organizations better understand the realities many families face.
“ALICE data enables them to focus their strategies and work collaboratively to address the urgent needs of struggling households while identifying barriers preventing long-term success,” Budd said.
He added that many households fall into a gap where they earn slightly above eligibility requirements for public assistance but still face significant financial hardship.
“For every household that qualifies for social supports, many more go unassisted because they are just above the income eligibility requirements,” Budd said.
More than one-third of Central Indiana households affected
The findings show financial hardship remains widespread throughout Central Indiana.
Across the seven-county service region of Boone, Hamilton, Hancock, Hendricks, Marion, Morgan and Putnam counties, 35% of households struggled to afford their basic needs in 2024. That represents approximately 257,530 households.
Marion County recorded the highest percentage of households below the ALICE Threshold in the region at 41%, followed by Putnam County at 38%.
Marion County also had the largest number of households facing financial hardship, with 168,381 households living below the ALICE Threshold. Hamilton County followed with 34,764 households.
Within the region, 24% of households fell into the ALICE category while 11% lived below the federal poverty level.
Denise Luster, chief data and technology officer for United Way of Central Indiana, said the report highlights the challenges facing many workers who provide essential services throughout the community.
“Across Central Indiana, ALICE families are the backbone of our communities — the caregivers, delivery drivers and essential workers we rely on every day,” Luster said. “Yet too many continue to face barriers to financial stability despite working hard.”
United Way of Central Indiana has committed to helping move 10,000 households move farther from poverty through initiatives focused on economic mobility, affordable housing and access to essential services.
Racial and family disparities persist
The report also revealed significant disparities among racial and demographic groups.
Statewide, 55% of Black households lived below the ALICE Threshold in 2024 compared with 36% of white households. Hispanic and multiracial households both reported hardship rates of 43%.
In Central Indiana, half of Black households and 42% of Hispanic households were living in poverty or below the ALICE Threshold.
Family structure was another strong predictor of financial stability. Statewide, 72% of households headed by single women lived below the ALICE Threshold, compared with 49% of households headed by single men.
Age also played a role. Households headed by someone younger than 25 experienced some of the highest rates of financial hardship, while adults 65 and older represented a growing share of ALICE households.
Researchers noted that these disparities reflect longstanding inequities related to employment opportunities, housing, education and access to community resources.
Essential workers continue to struggle
The report found that financial hardship extends into many of Indiana’s most common occupations.
Among the state’s largest employment sectors, workers in accommodation and food services experienced the highest levels of hardship, with 41% living in households below the ALICE Threshold.
By occupation, 54% of waiters and waitresses and 46% of cashiers lived in households unable to consistently afford basic necessities.
The findings underscore a central message of the ALICE report: employment alone is often not enough to guarantee financial stability.
Indiana United Ways plans to relaunch its online “Making Tough Choices” simulation later this month. The interactive tool allows participants to experience the difficult financial decisions many ALICE households face each month while balancing housing, child care, transportation and other essential expenses.
Advocates hope the data and tools will help policymakers, community organizations and residents better understand the growing gap between wages and the rising cost of living across Indiana.
To read the full report, visit unitedforalice.org/home.
This reporting is made possible by a grant from the Indianapolis African-American Quality of Life Initiative, empowering our community with essential health insights. https://iaaqli.org/
Contact Health & Environmental Reporter Hanna Rauworth at 317-762-7854 or follow her on Instagram at @hanna.rauworth.
Hanna Rauworth is the Health & Environmental Reporter for the Indianapolis Recorder Newspaper, where she covers topics at the intersection of public health, environmental issues, and community impact. With a commitment to storytelling that informs and empowers, she strives to highlight the challenges and solutions shaping the well-being of Indianapolis residents.
